Why is coal being imported for power generation if there is no shortage? For whose benefit are consumers paying extra tariff for imported coal?


Report by Kamgar Ekta Committee (KEC) correspondent


In a reply given in Rajya Sabha on 25th July 2022, Minister of Coal & Mines said:

“There is no shortage of coal in the country. The all-India coal production in year 2021-22 was 778.19 Million Tonne in comparison to 716.083 Million Tonne in year 2020-21. Further in the current financial year (up to June) the country has produced 204.876 Million Tonne as compared to 156.11 Million Tonne during the same period of last year with growth of about 31%.”



The question is when there is no shortage of coal and the coal production has increased, why have state-owned power generating companies (Gencos) been forced to import 10% coal by the central government at three to four times the price of domestic coal?

It is reported that the plans have been drawn up to import 75 million tonnes of coal in 2022-23. This will lead to power tariffs going up by 50 to 80 paise per unit.

Why are customers being made to pay extra charges due to the use of imported coal? For whose benefit is the import of coal being insisted upon when it is not required?

It is obvious that the import of coal will benefit big trading companies and big capitalists like Adani and Tata who own coal mines in other countries.

Power consumers are being made to pay for enriching a few monopolies.



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